chapter

overview of marketing

one

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

1-2

LEARNING OBJECTIVES

LO 1-1 Define the role of marketing in organizations.

LO 1-2 Describe how marketers create value for a product or service.

LO 1-3 Understand why marketing is important, both within and outside the firm.

1-3

What is Marketing?

Marketing is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

1-4

What is Marketing?

Marketing

Marketing helps create value.

Marketing is about satisfying

customer needs and wants.

Marketing entails an exchange.

Marketing requires product, price,

place, and promotion decisions.

Marketing can be performed by both

individuals and organizations.

Marketing occurs in many settings.

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Marketing is about Satisfying Customer Needs and Wants

• What group is Pepsi targeting with this ad?

• What other benefits of soft drinks might Pepsi advertise?

• What groups might these benefits appeal to?

PRNewsFoto/PepsiCo; AP Photo.

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Marketing Entails an Exchange

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Marketing Requires Product, Price, Place, and Promotion

Decisions

Product

Creating value

PRNewsFoto/PepsiCo;AP Photo.

Price

Capturing value

©Digital Vision Ltd.

Place

Delivering value

©BrandX/JupiterImages/Getty Images.

Promotion

Communication value

©Stockbyte/PunchStock.

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Product: Creating Value

• The fundamental purpose of Marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

Goods

Services

Ideas

Royalty-Free/Corbis

Roz Wodward/Getty Images

Flying Colours Ltd./Getty Images

1-9

Price: Capturing Value

• Price is everything a buyer gives up (money, time, energy) in exchange for the product.

• How much are customers willing to pay and can a profit can be made at that point.

AP Photo/The Canadian Press, Jacques Boissinot.

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Place: Delivering the Value Proposition

• Place, or supply chain management, describes all activities necessary to get the product to the right customer when the customer wants it.

• Where would you find this product in the store?

Courtesy Horizon Organic Dairy

1-11

Superior Service: AT&T?

Courtesy AT&T; Agency: BBDO/Atlanta; Artist: Guido Daniele; Photographer: Andric

1-12

Promotion: Communicating Value

• Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response.

Photo by Paul Hawthorne/Getty Images

1-13

Marketing Can be Performed by Individuals and Organizations

ETSY Website

C2C

Consumer B

B2C

Consumer A

B2B

Retailer (Sells PCs &

monitors)

Manufacturer (Makes monitors)

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Marketing Impacts Various Stakeholders

Society Customers

Employees SupplyChain

Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc.

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Marketing Helps Create Value

1. H.Armstrong Roberts/Retrofile/Getty Images 2. Jamie Grill/Iconica/Getty Images 3. ©Ted Dayton Photography/Beateworks/Corbis 4. Ciaran Griffin/Stockbyte/Getty Images 5. ©Colin Anderson/Blend Images/Corbis

Production

1.

Sales

2.

Marketing3.

Value based marketing

4.

5.

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Value-Based Marketing

“Pure Dark ChocolateLight Exquisite Cookie”

Courtesy Pepperidge Farm.

check yourself

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1.What is the definition of marketing?

2.Marketing is about satisfying _________ and _________ .

3.What are the four components of the marketing mix?

4.Who can perform marketing?

5.What are the various eras of marketing?

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Value Based Marketing

Photo by Christopher Peterson/BuzzFoto /FilmMagic /Getty Images

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How Do Firms BecomeValue Driven?

Sharing Information

Balancing Benefits with Costs

Building Relationships with Customers

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Connecting With Customers Using Social & Mobile Marketing

• 46 % of Internet users worldwide interact with social media on a daily basis.

• 77 % of the world’s population subscribes to mobile services. Photo by Spencer Platt/Getty Images.

check yourself

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1.Does providing a good value mean selling at a low price?

2.What are the benefits of long-term relationships with customers?

3.How are marketers connecting with customers using social and mobile media?

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Why Is Marketing Important?

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check yourself

1-23

1.List five functions that illustrate the importance of marketing.

2.A firm doing the right thing emphasizes the importance of marketing to _________.